Points of Order

Angela Rayner Excerpts

Tuesday 27th February 2018 Commons Chamber

[Mr Speaker]

It is not a point of order, as the hon. Gentleman rightly says. If the hon. Lady wishes to go in hot pursuit of the Minister and to seek to engage him in conversation on this matter, conceivably even over a cup of tea, it is open to her to try, although it does not look as though the prospects of her succeeding today are high.

[Angela Rayner (Ashton-under-Lyne) (Lab)]

On a point of order, Mr Speaker. In the Minister’s response to my hon. Friend the Member for Manchester Central (Lucy Powell), he said that the same due diligence was carried out by the same advisers on all candidates. That is simply not true. Would the Minister like to correct the record, based on the commissioner’s findings?

[Mr Speaker]

I am aware of the summary of the report, but I have not read the report. Again, this is not a point of order; it is a matter of debate. If the Minister wants to engage with this, he can briefly respond, but he is not obliged to do so—[Interruption.] It appears he does not wish to. What I would say to the shadow Secretary of State is that she has made her own point in her own way. As I said to somebody yesterday, she has done so with her usual force and alacrity. It is on the record and we are grateful to her.

Higher Education Funding

Angela Rayner Excerpts

Wednesday 11th October 2017 Commons Chamber

[Angela Rayner (Ashton-under-Lyne) (Lab)]

(Urgent Question): To ask the Secretary of State for Education if she will make a statement on higher education funding.

[The Minister for Universities, Science, Research and Innovation (Joseph Johnson)]

On 9 October, I made a written ministerial statement to the House setting out changes to the repayment threshold for student loans from April 2018 and confirming the maximum tuition fees for the 2018-19 academic year. The Government’s reforms to higher education funding since 2012 have delivered a 25% increase in university funding per student per degree. University funding per student is today at the highest level it has been at any time in the past 30 years.

As the House is aware, the Government have decided to maintain tuition fees at their current level for the 2018-19 academic year. This means that the maximum level of tuition fees will be £9,250 for the next academic year, 2018-19, which is about £300 less than if the maximum fee had been uprated in line with inflation.

We will also increase the repayment threshold for student loans from its current level of £21,000 to £25,000 for the 2018-19 financial year. Thereafter, we will adjust it annually in line with average earnings. This change applies to those who have taken out or will take out loans for full-time and part-time undergraduate courses in the post-2012 system. It also applies to those who have taken out or will take out an advanced learner loan for a further education course. Increasing the repayment threshold will put more money in the pockets of graduates by lowering their monthly repayments. They will benefit by up to £360 in the 2018-19 financial year. The overall lifetime benefit is greatest for graduates on middle incomes; low earners of course continue to be exempt from repayments.

We have world-class universities, accessed by a record number of young people from disadvantaged backgrounds, and a progressive funding system. We are building on those strengths through our planned reforms, including reforming technical education to provide new routes to skilled employment and strengthening how we hold universities to account for the teaching and outcomes they deliver through the teaching excellence framework.

The changes we are making are considered proposals that reinforce the principles of our student loan system and ensure that costs continue to be split fairly between graduates and the taxpayer. However, we recognise that there is more to do. We have further work under way to offer more choice to students and ensure they get value for money. We want more competition and innovation, including through many two-year courses. As the Prime Minister made clear last week, we will continue to keep the system under careful review to ensure it remains fair and effective. The Government will set out further steps on higher education student financing in due course.

[Angela Rayner]

Let me welcome Members back from conference season. We sang “The Red Flag”; the Conservatives waved the white flag. I told our conference that the Government should get on with sorting out student finance. Then the Prime Minister told her conference that they would. I suppose I am cheaper than Lynton Crosby, but the Government’s announcement begs just a few questions: what, who, when, why, how and how much? Apart from that, it is completely clear. What are the details of the review of higher education that the Prime Minister promised? Who will sit on it? When will it start and finish? Who decided that policy, how and when? Is it true that the Minister was unaware until the Prime Minister announced it? Surely he cannot be the least favoured Minister in the Johnson household.

Can the Minister tell us how much these policy changes will cost? How much more will taxpayers contribute and how much interest receivable is lost? Will the reduced income be replaced by additional funding? Can the Government explain why they have changed their mind since we last asked for these measures to be taken and they refused? Are they still considering capping interest rates below the 6% some graduates are being charged? What is their policy on grants? “Senior sources” have briefed that the Education Secretary wants them back. Will the Minister now match our commitment to restore maintenance support?

Just what is the Government’s policy on tuition fees? They boast about freezing fees for one year, but we all know that that is simply because they do not have a majority in this House for any rise, so what will they do after that? Will they finally accept that this House voted against their most recent rise, and revoke that too?

The Prime Minister said that the Government have listened and learned. Will they listen to this House, and when will they learn that actions mean more than words?

[Joseph Johnson]

I will answer some of the hon. Lady’s questions—in fact, all the questions. The normal, cross-Government processes were followed in the run-up to the announcements. The Department for Education worked closely with the Prime Minister’s team to develop those announcements. We are delighted to be able to announce the changes that she set out. I set out in the ministerial statement that I published on Monday the full details that the hon. Lady has just asked for. However, to recap, the threshold will rise to £25,000 from £21,000. That will put a further £360 in the pockets of graduates. We have taken stock of the views of parents, students and Parliament itself in coming to our decision to freeze tuition fees for the coming academic year. Therefore, we are listening and, where appropriate, we are taking action to ensure that our student finance system is getting the balance of interests right between those of students and those of the general taxpayer.

That is the core principle of our student finance system, which must achieve three goals. First, it must support access for the most disadvantaged, and it is achieving that with great success. Someone from a disadvantaged background is more than 50% more likely to go to a highly selective university than when the Labour party left office, and more than 43% more likely to go to university overall. Students are less likely to drop out, whether they are from BME, disadvantaged, mature or part-time backgrounds, than they were when the Labour party left office. This system is delivering participation and access in a way that alternative student finance systems never have.

Secondly, the system is working for universities. Our universities are 25% better funded per student and per degree than they were under the old student finance system, before the 2011 reforms. That is of fundamental importance. Does the Labour party really want our universities not to have the resources they need to do excellent teaching and to deliver great research? That is what it is proposing. It is proposing a return to the system that we saw in the run-up to the Dearing report in 1998, a system that saw a real-terms decline in university funding of almost 50%. Those are the changes that the Labour party will deliver if it has a chance to get into office.

Thirdly, our system is fair to the taxpayer. We keep the balance of funding under careful review. As the Prime Minister made clear in her party conference speech and in announcements in Manchester last week, we will announce further steps in that regard in due course.

Tuition Fees

Angela Rayner Excerpts

Wednesday 19th July 2017 Commons Chamber

[Angela Rayner (Ashton-under-Lyne) (Lab)]

I beg to move,

That this House has considered the Government’s decision to increase tuition fees implemented by the Higher Education (Basic Amount) (England) Regulations 2016 (S.I., 2016, No. 1205) and the Higher Education (Higher Amount) (England) Regulations 2016 (S.I., 2016, No. 1206).

Thank you, Mr Speaker, for granting this emergency debate. It is a shame that it has been necessary when we have a First Secretary of State who called for a national debate on tuition fees, a Brexit Secretary who says that this House always votes on statutory instruments and a Justice Secretary who, when Leader of the House, actually accepted the need for a debate and a vote. Of course, that was before the election; 100 days later, this weak and wobbly Government do not even trust their own Back Benchers with a vote on their own policies.

The Higher Education and Research Act 2017, which the Education Secretary and the Minister for Universities, Science, Research and Innovation took through this House, is very clear on the matter. Paragraph 5 of schedule 2 states that the upper limit of fees can rise only when

“each House of Parliament has passed a resolution that, with effect from a date specified in the resolution, the higher amount should be increased”.

Will the Minister guarantee that no students will have to pay the higher fees until both Houses have passed such a resolution allowing it, and will he tell us when the votes on these resolutions will take place?

The Minister seems to be one member of the Government who does not want this vote, judging from his Twitter feed last night. He said that plans to raise fees were first outlined in July 2016, and that we have since had extensive debate. Perhaps he forgot that the plans were announced on the last day before summer recess last year, and were snuck out as one of 30 written statements on that day. The statutory instrument was then put before the House just before Christmas last year. Not long after that, the Opposition prayed against the measures, yet despite repeatedly pushing for it we were not given a debate. As the Minister said, the regulations came into force on 6 January.

[James Cartlidge (South Suffolk) (Con)]

On the subject of being weak and wobbly, will the hon. Lady confirm whether it is still Labour policy to pay off all £100 billion of the outstanding student debt—yes or no?

[Angela Rayner]

I do not know how many times I have to explain this to Conservative Members before they finally understand. A cynic might say that they are wilfully misrepresenting my party’s policy. We have never said that we would simply write off all existing debt. Conservative Members refer to comments made by my right hon. Friend the Leader of the Opposition, and I remind them that he said we would look at steps to reduce or ameliorate the debt burden. Perhaps that confused Conservative Members, because their Front Benchers have not done that in seven years. For instance—

[Several hon. Members rose—]

[Angela Rayner]

Conservative Members may want to listen to this before they intervene. For instance, we would look again at the repayment threshold for student debts; the Government have frozen it at £21,000, which will cost lower-earning graduates the most. We would look at the interest rates on debt, which the Government have allowed to reach an extortionate, unacceptable 6.1% for the year to come. I have said it once and I will say it again: we have no plans to write off existing student debt and we never promised to do so. Unlike the Conservative party, we made sure that all our plans were fully costed and outlined in our manifesto. Perhaps it could learn something from that.

[Paula Sherriff (Dewsbury) (Lab)]

In 2010 the Government tripled tuition fees and then slashed the education maintenance allowance. In 2015 they took grants from students and now they are raising fees again. Does my hon. Friend agree that it is no surprise whatsoever that young people are turning away in their droves from this Government?

[Angela Rayner]

I absolutely agree with my hon. Friend, who makes an important point. Conservative Members have a sour-grapes attitude because they clearly understand that, unlike them, we have connected with the young people of this country.

[Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)]

I wonder if the hon. Lady could put to one side the script she was given seconds before she got up and answer this very simple question. During the election, her party made it categorically clear to endless numbers of students that it would abolish the student debt. Will she now get up and apologise for using them as election fodder?

[Angela Rayner]

As I said to the hon. Member for South Suffolk (James Cartlidge), that was not—[Interruption.]

[Mr Speaker]

Order. Members must calm down. Earlier we were blessed with the presence of the Father of the House, who asked a question at Prime Minister’s questions. The rest of the time, he exuded a Buddha-like calm, which other right hon. and hon. Members should seek to emulate. I deliberately granted this debate the full three hours, so there is plenty of time, but Members should not shout at each other across the Chamber.

[Angela Rayner]

Thank you, Mr Speaker. The right hon. Member for Chingford and Woodford Green (Mr Duncan Smith) seems to have failed to understand our policy, which was absolutely clear: we would abolish tuition fees from the day we took office—[Interruption.] Please listen to my answers. That was absolutely clear. We said that we would abolish tuition fees from the moment we got into power. We also said that we would bring back maintenance grants. Unlike Conservative Members, who are chuntering away and not listening to what I have to say in response to their interventions—

[Several hon. Members rose—]

[Angela Rayner]

I am not taking any more interventions if Conservative Members are not prepared to listen to the answers.

[Chris Bryant (Rhondda) (Lab)]

May I suggest to my hon. Friend that she does not take any nonsense from Government Members? They repeatedly told this House that whenever the Opposition prayed against a statutory instrument, they would guarantee a vote in this House so that people could put their vote where their mouth was, but they have repeatedly failed to do that. They are trying to do this by the back door, which is why she is absolutely right to show them the door.

[Angela Rayner]

I thank my hon. Friend for his intervention and I congratulate him on having more experience than I do of such matters.

[Several hon. Members rose—]

[Angela Rayner]

I am going to make some progress.

The Minister said that the regulations came into force on 6 January, but they did so without debate, let alone a vote in this House. Then, when we were finally granted a debate and a vote, the Prime Minister called her early election and the regulations came into force while Parliament was dissolved. We have since raised the issue repeatedly, only to be told, eventually, by the new Leader of the House that the Government do not intend to provide any time for it. So much for the Minister’s “extensive debate”.

[Simon Hoare (North Dorset) (Con)]

I promise the hon. Lady that I will listen intently to her reply. She and I will agree, I am sure, on one thing: this country is very lucky to have people with high-quality brain power at university today. They have told me and my Conservative colleagues what they thought her party leader said during the election campaign, and it is at huge variance with what the hon. Lady claims he said. Nobody remembers the weasel words and caveats that she has deployed today. Will she now apologise?

[Angela Rayner]

The hon. Gentleman calls them weasel words, but I can guarantee him that before and throughout the general election campaign I travelled up and down the country with my right hon. Friend the Leader of the Opposition and we were absolutely clear on this. Many students—

[Robert Jenrick (Newark) (Con)]

Will the hon. Lady give way?

--- Later in debate ---

[Mr Speaker]

You were—you were smirking. Don’t smirk at me. I am telling you what the situation is and you can accept it, whether you like it or not. Behave.

[Angela Rayner]

Thank you, Mr Speaker. I believe that our party was absolutely clear on the matter. The thousands of students who have contacted me are clear on it as well, so I do not know why the hon. Member for North Dorset (Simon Hoare) is not.

The consequence, of course, is uncertainty both for universities and for thousands of students due to go to university next year. Perhaps the Minister will tell us what will happen if, once we eventually secure a vote, the regulations are revoked during the university year. This fees hike is damaging enough in itself, but leaving it unclear is even worse.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Does my hon. Friend agree that the Government’s response to this debate is extraordinary? They are mocking the issues when they should be much more concerned about the recently published drop in university application figures and the rising debt of young people. Parents and grandparents have told me of debts of about £50,000 for young people and their families. Should we not be sending a message of hope to young people, not saying that we will increase their anxiety before they even start on life?

[Angela Rayner]

I absolutely agree with my hon. Friend. This was a really hot topic during the general election. I believe that the Opposition have the best interests of young people at heart, and the Government really need to listen to where the population are on this particular issue.

The current plans are all part of a pattern of behaviour from this Government. They tripled tuition fees to £9,000. They abolished maintenance grants for students, meaning that the poorest students will take on the most debt. They promised, when they tripled tuition fees, that the threshold at which graduates repay their student debts—it is currently £21,000—would rise in line with earnings. In fact, the then Universities Minister said:

“We will increase the repayment threshold to £21,000, and will thereafter increase it periodically to reflect earnings.”—[Official Report, 3 November 2010; Vol. 517, c. 924.]

They broke that promise as well. While tuition fees continue to rise, the repayment threshold remains frozen, hitting graduates on lower salaries each and every year.

[Lucy Frazer (South East Cambridgeshire) (Con)]

The hon. Lady refers to broken promises. Will she tell us which party stated in 2001 that it would not introduce top-up fees because it had legislated against them, and then introduced them in 2004?

[Angela Rayner]

The hon. and learned Lady will know that when we introduced tuition fees and dealt with that issue, we invested considerably and increased the amount of maintenance grants and support on offer to poorer students. Recently, even Lord Adonis, the architect of those tuition fees, called fees a

“Frankenstein’s monster of £50,000-plus debts for graduates on modest salaries who can’t remotely afford to pay back these sums while starting families”.

[Wes Streeting (Ilford North) (Lab)]

I was in Parliament at the time when that Bill went through, protesting against it. Not only has our noble Friend Lord Adonis had a change of heart; so has the entire Conservative party, because it railed against the introduction of top-up fees. George Osborne called it a “tax on learning”. Who would have thought that only a few years later, it would be the Conservative party that plunged students into the highest levels of debt in the western world?

--- Later in debate ---

[Angela Rayner]

I thank my hon. Friend for that intervention. I am really trying to make this debate constructive, instead of ping-ponging who said what. It should be about what the young people and students of today expect of us. They are telling us that the current debt levels are unsustainable, and they clearly are unsustainable.

Conservative Members say all the time that a record number of students from disadvantaged backgrounds are going to university. If only that was the whole story. The evidence shows that students from the most disadvantaged backgrounds are the most likely to be deterred by debt.

[Chris Elmore (Ogmore) (Lab)]

Does my hon. Friend agree that something different is happening in Wales, with the implementation of the Diamond review? It is moving back to a grant-based system, so the vast majority of students will receive a full grant and support for living costs, which is something that the National Union of Students and various other student union bodies have called for. That shows that there can be a different way. That is the difference between having a Labour Government in Wales and a Tory Government in England.

[Angela Rayner]

I am sure that my hon. Friend will have pre-empted some of the interventions from Conservative Members, who like to say that the Welsh Government are not doing things right. Of course, the Welsh Government have invested in their young people. They believe that their young people are the future of the Welsh economy. I congratulate them on making those decisions. Of course, the Welsh Government make decisions about education—before I get an intervention about what Wales is doing about loans.

As I was saying, burdening students with more than £50,000 of debt means that we will see more disadvantaged young people not going to university. After all, we have seen that at many of the most prestigious universities, including Oxford and Cambridge, the number of disadvantaged students is falling.

[Tim Loughton (East Worthing and Shoreham) (Con)]

The hon. Lady complains that we keep asking questions about who said what and when. The trouble is that the Opposition perpetrated a scam on the British people. They clearly led students in our constituencies to believe that their loans would be written off. If she is now saying that that was not the intention, but that they would just cancel future tuition fees, how is it fair to those people, including my children, who have notched up tens of thousands of pounds of debt, which she is complaining about, that she leaves them with a debt when future students will not have a debt? What is fair about that?

[Angela Rayner]

I thank the hon. Gentleman for his intervention, but I cannot really say it any more clearly than we have said it. We said we would look at that, but that we would not do anything with it unless we could afford it.

I have put forward and will continue to put forward three things that the Government could do right away to help our students, including the hon. Gentleman’s family members. First, the Government have decided to freeze the repayment threshold, which they do not have to do. They could put it in line with earnings. Secondly, they could look at the percentage rate of the loans. It is 6.1%, but it does not have to be that much. It was the Bank of England rate plus 1%, which would now be 1.25%—considerably lower than the current 6.1%. Lastly, if the Government really care about social mobility and getting students into university, let them bring back maintenance grants.

[Ms Karen Lee (Lincoln) (Lab)]

I was a nurse until a month ago. I was not even adequately paid, let alone overpaid. I got a bursary when I trained. I was a single parent and I could not have trained without it. The fact that nursing applications have fallen by 23% since the Government took away bursaries means that people like me will not be able to train. What are my hon. Friend’s comments on that?

[Angela Rayner]

I welcome my hon. Friend to this place. She makes an extremely important point. Ending nursing bursaries has had a negative impact on people applying to go to university to do nursing courses. As we look to exit the European Union, Members on both sides of the House know that we have to train and skill up our own workforce in order to provide all the nurses, doctors and other skilled workers we require. Conservative Members said during the general election campaign that they wanted to cut immigration. If they truly want to do that, they have to invest in young people in this country.

It seems that the Secretary of State believes that access to higher education simply ends with admissions. Figures from the Office for Fair Access show that the proportion of students dropping out before they finish their studies is at a five-year high. Disadvantaged students are nearly twice as likely to drop out than their more affluent peers.

[Richard Graham (Gloucester) (Con)]

I appreciate that this is a difficult day for the hon. Lady because she has come to raise some important issues, which we should debate, but her credibility is completely undermined by the difficulty of her saying that she speaks in the best interests of young people on the one hand, while on the other hand her party’s policy has changed to a position where today she says she has no plans to write off student debt. Therefore, her party’s word cannot be trusted on anything and young people will become more cynical about what politicians say.

[Angela Rayner]

The hon. Gentleman knows that we are talking about the tuition fee rise that his party said it would not impose on students and that it is trying to deny us a vote on. I hope he will push his Government to ensure that we do get a vote and that he will vote with us not to hike up tuition fees for young people.

Social mobility is stalling and drop-out rates are rising. Student debt in the UK is the highest in the world and more than 75% of students will never pay off their debts. The fact is that the Government’s policy on higher education simply is not working.

[Andrew Percy (Brigg and Goole) (Con)]

My position on tuition fees is perfectly clear, as my voting record in this Chamber will attest. The difference in what the hon. Lady has outlined today is that the normal run of things with Labour policy is to promise students something and backtrack when in government; this time, Labour has promised to write off students’ debts and then backtracked in opposition. Will she therefore apologise to the grandfather in my constituency who simply got his information from the news and wrote to me to tell me that he was going to vote Labour so that his children’s debts would be written off? If not, is she accusing him of being a bit stupid?

[Angela Rayner]

What I promise I will do for any of the hon. Members in this Chamber and any of their constituents who potentially were misguided is ask them to refer to our website, where they can get a copy of “For the many not the few”, which highlights our national education service. That is a huge number of pages longer than the policy in the Conservative manifesto, which was, quite frankly, to take the food from children’s mouths. That was rejected by the people of this country quite outstandingly.

There is an alternative—one that was outlined by the Labour party at the last general election. We pledged to end university tuition fees so that future generations will not be burdened with debt simply for seeking an education. We would fund that by taxing only the wealthiest individuals and the biggest businesses, rather than forcing only those graduates unfortunate enough to be £50,000 in debt to foot the bill. By contrast, the Government’s system will still cost the taxpayer nearly £6 billion a year in the long term. We would also bring back student maintenance grants to support students from low and middle-income backgrounds with their living costs, reversing one of the Government’s most regressive decisions.

There is someone in the Conservative party who for a long time agreed with that policy. There was a Tory shadow Education Secretary who said that the removal of the maintenance grant would

“far from widening access, narrow it.”

She told her party that it needed to

“show we care about the student who wants to go to university, but can’t afford tuition fees.”

She then helped to write, and stood on, a manifesto that would have scrapped tuition fees altogether. She is now the Prime Minister. But she is now the one narrowing access, not widening it. She is showing students that she does not care, and is hoping that her manifesto promises can be disposed of as quickly as Nick and Fiona were.

To think that on Monday the Secretary of State accused me of peddling “snake oil propaganda”. I guess that is her specialist subject. She promised to protect school budgets in her manifesto in 2015 before cutting them in real terms. She pledged to give 30 hours of free childcare to working parents only to tell tens of thousands of them that they do not earn enough to be eligible. Now she is breaking every single promise the Conservative party has made to students.

I have told the Secretary of State again and again what could be done to address the existing debt burden. I repeat that she could look again at the extortionate interest rates on students, due to rise to more than 6% at a time when the Bank of England base rate is 0.25%. She could keep the promise originally made to students to raise the repayment threshold on their debt in line with average earnings. She could look again at the unacceptable levels of disadvantaged students dropping out of university, and give them proper maintenance support.

All of those things would reduce the burden of debt on today’s graduates, and most of them would not cost the taxpayer an extra penny. The 2015 general election feels like a long time ago, but I remember a time when the Conservatives stood on a manifesto that said that

“we as a nation should not be piling up and passing on unaffordable levels of debt to the next generation.”

But that is exactly what the Government are doing. Increasing tuition fees again will simply leave more and more young people with debts they will never repay. Labour believes that is the wrong thing to do. Conservative Members may disagree, and that is their right, but what is not right is to deny this House the chance to decide.

Tuition fees are an important issue, but they are not the main issue before us today. The question before us today is much more fundamental. It is about trust in our Government and ultimately our democracy. Frankly, if Ministers cannot keep their promises to us, why should anyone else believe them?

[James Cartlidge]

On a point of order—

--- Later in debate ---

[Mr Speaker]

Order. The hon. Gentleman must resume his seat. It was a nice try, and he is an industrious fellow, but that is a matter of debate. He cannot ask the Chair to adjudicate on who said what when, especially when it was outside the Chamber. I appreciate his assiduity, but he needs a rather better disguise than that.

[Angela Rayner]

I am sure the Minister is about to make what he believes is a convincing case. However, the real test is not to give us his words, but to give us a vote on them. That is the question I put to him now. If he is so convinced that what he is doing is right, will he have the courage of those convictions and put them to the House?

--- Later in debate ---

[Joseph Johnson]

My hon. Friend makes some superb points, and he is a tireless champion of his constituents.

On the repayment of loans, our repayment system offers a fair deal to students. The current student loan system is deliberately subsidised by the taxpayer and is universally accessible to all eligible students, regardless of their personal financial circumstances or credit history. Our repayment system is based on income, not on the amount borrowed. Graduates with post-2012 loans pay back only when they are earning more than £21,000, and then only 9% of earnings above that threshold. After 30 years, all outstanding debts will be written off altogether with no detriment to the borrower, and the Student Loans Company has no recourse to their other assets. The maximum fee cap is being maintained in line with inflation in 2017-18, so it will not be increasing in real terms for anyone going to university. We believe that it is right for those who benefit most from the higher education they receive to contribute to the cost of it. We should not forget that higher education leads to an average net lifetime earnings premium that is comfortably over £100,000.

Labour continues to scaremonger about the changes to higher education. The Conservative-led coalition and this Government have introduced important reforms. The Opposition have promised to write off student debts, to cut tuition fees and to restore maintenance grants. However, they have failed to set out a credible plan on how to fund their promises, and are now shamelessly abandoning them just weeks after the general election. That is hardly surprising, given that they had not even managed to persuade key figures in the Labour party who served in their previous Government. For example, Lord Mandelson described their policy offer as “not credible” and urged Labour to

“be honest about the cost of providing higher education”.

Of course, it is not just Lord Mandelson who has commented on this. The former shadow Chancellor, Ed Balls, said that his party’s failure to identify a sustainable funding mechanism was a “blot on Labour’s copybook”.

I therefore challenge the Opposition to explain how they would fund their alternative proposals on tuition fees, maintenance grants and the write-off of student debt. We estimate the annual cost of their policy on tuition fees to be £12 billion a year over the next five years of this Parliament. In addition, a one-off expenditure would be required to make good the promise of writing off historical student debt to the tune of £89.3 billion in cash costs. If Labour wanted to go the whole hog, a further £14 billion would be required to compensate graduates for historical borrowing that they had already repaid.

Make no mistake, Labour’s policy of abolishing fees would be a calamity. It would be ruinous for our world-class university sector, leading almost certainly to a fall in per-student funding of the same magnitude we saw in the decades before the introduction of top-up fees—a fall of around 40% in terms of the unit of resource. It would lead to the inevitable re-imposition of student number controls, which would cause the poorest and most disadvantaged to miss out on university, throwing social mobility into reverse. It would do all this at an eye-watering cost to the hard-working general taxpayer, whether he or she had been to university or not. Gone would be the concept of a fair sharing of the costs of university between graduates with higher-than-average lifetime earnings and society at large; taxpayers would foot the entire bill. That would be bad for universities, bad for students and bad for the taxpayer. It is no surprise that in the one place where Labour is in power, it has chosen a different approach. Last week, the Labour Government in Wales quietly increased their tuition fees for 2018-19 to £9,295 a year, making them marginally higher than the current rates in England. Labour in Wales at least knows that the party opposite’s plans are unfair to students and ruinous to universities. Perhaps it should tell the Labour party leader.

[Angela Rayner]

On a point of order, Mr Speaker.

[Mr Speaker]

I hope that it is not a point of debate.

[Angela Rayner]

It is not, Mr Speaker. I did not want to interrupt the Minister earlier, but he claimed that the Opposition had had the chance to call a vote on the statutory instrument and did not do so. Perhaps you could confirm for the record that a prayer was laid against the regulations, and that the Government have simply refused to allow the House a vote on them since then. I understand that the Minister has a particular responsibility not to misinform the House and I therefore ask for this matter to be clarified.

[Mr Speaker]

The hon. Lady has put me on the spot, but I make no complaint about that. Knowing the Minister as I do, I know him to be a person of integrity, and I would not and am not doubting that for one moment. My recollection—I am open to advice and possibly even scholarly correction from the source from which it usually derives—is that the Opposition had prayed against this set of regulations. My further recollection—I think this is in the Official Report—is that the Government had indicated an intention for this matter to be debate and voted upon. It is not always possible to predict the course of events, but I think the commitment was made on 31 March for 19 April. Members will recall, and others will be aware, that on 19 April the House debated a motion to facilitate the calling of an early general election. Thereafter, there was a small amount of business in what we normally call the wash-up session, and then we departed to our constituencies, so there was no debate and vote. That is how I remember it.

It is not desirable for the Chair to be asked to take sides between the parties, and I am not taking sides. I am certainly not taking sides on the merits or demerits of this issue; the Speaker should not do that. I had thought there was an expectation of a debate and a vote, and that the Opposition had done what was necessary to maximise the chance of such a vote. To be honest, I thought that the Government were open to such a debate and vote, until events overtook. That is history; we are where we are.

As to whether there is to be a substantive vote now, I await the development of events. [Interruption.] I am being fed a note. Oh, that is very helpful—and I mean very helpful. It is from one of our senior Clerks and says: “Don’t have the details. Believe you are correct. We can check.” I am very grateful to the Clerk, who is extremely committed to the public service.

Higher Education and Research Bill (Twelfth sitting)

Angela Rayner Excerpts

Committee Debate: 12th sitting: House of Commons
Thursday 13th October 2016 Public Bill Committees

[The Chair]

With this it will be convenient to discuss the following:

New clause 8—Revocation of the Education (Student Support) (Amendment) Regulations 2015—

“The Education (Student Support) (Amendment) Regulations 2015 (Statutory Instrument no. 1951/ 2015) are revoked.”

This new clause would revoke the Education (Student Support) (Amendment) Regulations 2015, which moved support for students from a system of maintenance grants to loans.

New clause 10—Impact of changes to financial support for students on access and participation—

“(1) The OfS must, within six months of the day on which this Act is passed, report to the Secretary of State an assessment of the impact of changes to student financial support arrangements made within the previous twenty-four months on access and participation, and make recommendations.

(2) The OfS may, in making the assessment of such changes as specified in section (1), make recommendations to the Secretary of State about further necessary changes to student support to enhance or mitigate the impact of that change on access and participation.

(3) The OfS must, within twelve months of any change to student financial support arrangements coming into force and after two twelve month periods thereafter, report to the Secretary of State an assessment of the impact of the change on access and participation and make recommendations.

(4) The OfS may, in making the assessment of such changes as specified in section (3), make recommendations to the Secretary of State about further necessary changes to student support to enhance or mitigate the impact of that change on access and participation.

(5) The Secretary of State must lay the reports specified in subsections (1) and (3) before both Houses of Parliament.”

This new Clause would require the OfS to report to the Secretary of State on the impact of changes to student funding on access and participation.

New clause 11—Access to support for modular study—

“The Secretary of State must, within six months of the day on which this Act is passed, set out arrangements in regulations made under sections 22 and 42 of the Teaching and Higher Education Act 1998, as amended, to provide support for students studying for institutional credits, as distinct from working towards a full qualification.”

This new Clause would require the Secretary of State to provide for module-specific loans, rather than requiring people to be working towards a full qualification to qualify for access to financial support.

New clause 13—Student support: restricted modification of repayment terms—

“(1) Section 22 of the Teaching and Higher Education Act 1998 (power to give financial support to students) is amended in accordance with subsections (2) to (4).

(2) In subsection (2)(g) at the beginning insert “Subject to subsections (3)(A) and (3)(B),”.

(3) In subsection (2)(g) leave out from “section” to the end of subsection (2)(g).

(4) After subsection (3) insert—

“(3A) Other than in accordance with subsection (3B), no provision may be made under subsection (2)(g) relating to the repayment of a loan that has been made available under this section once the parties to that loan (including the borrower) have agreed the terms and conditions of repayment, including during—

(a) the period of enrolment on a course specified under subsection (1)(a) or (1)(b), and

(b) the period of repayment.

(3B) Any modification to any requirement or other provision relating to the repayment of a loan made available under this section and during the periods specified in subsection (3A) shall only be made if approved by an independent panel.

(3C) The independent panel shall approve modifications under subsection (3B) if such modifications meet conditions to be determined by the panel.

(3D) The approval conditions under subsection (3C) must include that—

(a) the modification is subject to consultation with representatives of the borrowers,

(b) the majority of the representative group consider the modification to be favourable to the majority of students and graduates who have entered loans, and

(c) there is evidence that those on low incomes will be protected.

(3E) The independent panel shall consist of three people appointed by the Secretary of State, who (between them) must have experience of—

(a) consumer protection,

(b) loan modification and mediation,

(c) the higher education sector, and

(d) student finance.”

New clause 14—Student loans: regulation—

“(1) Any loan granted under section 22(1) of the Teaching and Higher Education Act 1998, (“student loans”) irrespective of the date on which the loan was granted, shall be regulated by the Financial Conduct Authority.

(2) Any person responsible for arranging, administering or managing, or offering or agreeing to manage, student loans shall be regulated by the Financial Conduct Authority.”

New clause 15—Higher Education loans: restrictions on modification of repayment conditions—

“(1) A loan made by the Secretary of State to eligible students in connection with their undertaking a higher education course or further education course under the Teaching and Higher Education Act 1998 shall—

(a) not be subject to changes in repayment conditions retroactively without agreement from both Houses of Parliament;

(b) not be subject to changes in repayment conditions in the event of the loan being sold to private concerns, unless these changes are made to all loans, in the manner prescribed above;

(c) be subject to beneficial changes, principally to the repayment threshold, in line with average earnings.

(2) In section 8 of the Sale of Student Loans Act 2008, for subsection (1) substitute—

“(1) Loans made in accordance with regulations under section 22 of the Teaching and Higher Education Act 1998 (c. 30) are to be regulated by the Consumer Credit Act 1974 (c. 39).””

This new clause would ensure no retroactive changes could be made to student loan repayment conditions without agreement from both Houses of Parliament.

[Angela Rayner (Ashton-under-Lyne) (Lab)]

It is a pleasure, as always, to serve under your chairmanship, Sir Edward. I rise to speak because I think that we have a chance to right a wrong. I hope that the whole Committee will indulge me and vote for our new clauses. I will speak to new clauses 8 and 15, and support new clauses 10, 11, 13 and 14, in the names of my hon. Friends the Members for Sheffield Central and for Ilford North, who will I am sure speak with their usual expertise and eloquence in due course.

New clause 8 would revoke the regulations that made the change from maintenance grants to maintenance loans, and would ensure that students from low and middle-income backgrounds can receive the maintenance grant again. The policy was first announced in the autumn statement by the then Chancellor, and was pushed through in a statutory instrument without the proper scrutiny of the whole House. It is right that we have the chance to scrutinise it here today. The power is in the Committee’s hands.

Far too many students feel that they have been ripped off by this Government—a feeling that, sadly, this Bill seems unlikely to change in its current form. First, the coalition Government trebled tuition fees, leaving students with some of the highest levels of debt in the developed world. They then froze the threshold at which students repay those debts, meaning that those on lower incomes will lose out yet again. Then, in one of the former Chancellor’s last great failures before leaving office, he abolished maintenance grants, replacing them with yet more loans and burdening young people with even more debt.

[Gordon Marsden]

My hon. Friend states our case strongly. Does she share my sense of regret that, despite the inadequate consideration by the Joint Committee on Statutory Instruments and despite our request that the Government bring the matter to the Floor of the House, it took an Opposition day motion to have the change debated? The Government’s majority in that Opposition day debate—from memory, I believe it was 16—was one of the lowest they had in that Parliament.

[Angela Rayner]

I absolutely agree with my hon. Friend. The Minister and his hon. Friends have an opportunity to right that wrong today, so I hope they are all listening and are willing to work collaboratively with us.

New clause 15 would introduce much-needed restrictions on the Government’s ability retrospectively to change the terms of student loan agreements. It would make such a change subject to the approval of both Houses of Parliament, which is exactly how things should be conducted in this place. Although the practical steps we propose are slightly different, new clause 15 has much the same goals as new clauses 13 and 14, tabled by my hon. Friends the Members for Sheffield Central and for Ilford North. Either approach would have our full support.

When we talk about students feeling ripped off by the Government, there can be no better example than the retrospective changes made to student loan agreements. The decision to freeze the repayment threshold so that graduates begin to repay their loans when they earn £21,000 a year, instead of allowing it to rise with inflation as initially promised, shows a brazen disrespect for students and destroyed any remaining trust they had in the Government. Fortunately for the Minister, he has the chance to restore that trust today by supporting new clause 15.

I am sure the Minister agrees that the Government have a great deal of work to do to ensure that all students, regardless of background, can access the education they need. After all, he was the one who said that the fall in the number of students from disadvantaged backgrounds at our elite universities showed

“a worrying lack of progress”

towards widening participation. We agree; that is why we tabled the new clause. He also said that our top universities must

“redouble their efforts…to boost social mobility”.

Our new clause gives him the chance to do that.

I know these Committee debates can feel a little dry, but if the Minister and his party vote with us, we can all leave this Committee Room knowing that we have done something exciting and worthwhile to boost social mobility. I, for one, would love to go back to my constituency tonight and sing it from the rooftops. It would be such a progressive step, but if the Minister cannot accept it, perhaps he can tell us what new steps the Government will take in the Bill to reverse the worrying free fall in the number of state-educated students going on to university.

More than half a million students were able to benefit from the maintenance grants policy and receive the support they needed to meet their living costs. The Government have said that the Bill

“will support the Government’s mission to boost social mobility, life chances and opportunity for all”,

but the Committee has spent a long time scrutinising it and the Government have come forward with no substantive proposals for doing any of those things; if anything, they have made them less likely to occur. Instead, they have offered us an office for students with no students in it, and access and participation plans that will take no substantive steps to improve either access or participation. Although the Government claim that their goal is to increase social mobility, there appears to be nothing in the Bill that shows that they are taking that challenge seriously.

Our new clauses give the Government an excellent chance to meet the goals that they have set themselves in the Bill. The Government have said that they want to boost social mobility. They can do just that by voting for new clause 8 and offering much-needed support to students from low and middle-income backgrounds. The Government have said that they want to improve life chances. What better way of doing that than by giving everyone the opportunity to access higher education if they want to? The Government have said that they want to improve opportunity for all. The Minister will be able to do just that by accepting the new clause. Is he willing to walk the walk of improving social mobility, or is he just talking the talk?

I understand that we are asking the Minister to carry out the dreaded U-turn. After all, he previously said that the abolition of the maintenance grant and the introduction of a new loan helps to balance the need to ensure that affordability is not a barrier to higher education with ensuring that higher education is funded in a fair and sustainable way. It is clear, however, that that will not be the case. After all, figures from his own Department show that since the trebling of tuition fees, there has been a sharp and continuous fall in the number of state-educated students going on to higher education. Perhaps he can tell us today how increasing the burden of debt on students by replacing maintenance grants with loans will improve matters.

The changes that the Government made retrospectively have made the problem even worse, but fundamentally this is not just about the principle of retrospective action; it is about trust. The Government having the power to change loans retrospectively means that every single student in further and higher education will be writing a blank cheque to the Government and, worse than that, they will be writing a blank cheque to a Government that they know they cannot trust—a Government that have already retrospectively changed the terms of their loans once, which, as the independent Institute for Fiscal Studies has shown, will cost the average student £6,000.

The Minister said that the funding for student finance would be fair and sustainable, but this is nothing more than a trick of accounting. The change from maintenance grants to loans appears to reduce the spending on universities, but all it really does is defer the cost. As has been shown by the independent Office for Budget Responsibility—an institution set up by his party’s Government—the change from maintenance grants to maintenance loans will, over the medium term, increase public sector debt by more than 2% of GDP. That is the result of the Government making loans when they know that most students will not be able to repay them. Moving to loans may be a good accountant’s trick to reduce the deficit, but it does nothing for our public finance or for the wellbeing of those students carrying that personal burden. It simply means that it will be the next generation left picking up the tab. We all know that this generation will be the first to be worse off than their parents. Do we really, as a nation, want to make a habit of that? The tab that maintenance loans will leave them with is more than 2% of GDP. That is more than our entire defence budget, more than £34 billion. Perhaps the Minister can tell us how leaving that debt for the next generation is, in his words, “fair and sustainable”.

The Government have made it clear that they want us to use the Bill to improve opportunity for all. We know that the maintenance grant is the way to do that. We saw under the last Labour Government how it was central to helping record numbers of children from disadvantaged backgrounds into universities—a proud record, I might add. The Government plan to scrap the maintenance grant. To simply impose an additional debt on students is a regressive step. Having already burdened students with additional debt, taking the power retrospectively to increase their debt burden again and again will create a dangerous disincentive, as students will not enter further and higher education for fear of what the Government will do to their loans. The Minister may feel that new clause 15 is unnecessary because his Government would never renege on their promises to students and never retrospectively change the terms of a loan agreement, but his Government have already done that once. We know that the Government have not only the power but the inclination, so it is no wonder that students are worried they will do it again.

--- Later in debate ---

[Joseph Johnson]

We have had a lengthy debate about issues that hon. Members and I have already debated on many occasions over the past year. I am sure they are familiar with many of the points I will make in response.

I will start with the overarching position, which is that Britain has some of the very best universities in the world and this Government are committed to putting them on a strong and sustainable financial footing to ensure that that continues. Our student funding regime achieves exactly the right balance between students, taxpayers and universities. Our decisions have allowed us to remove the cap on student numbers; we have increased up-front financial support to students and made above-inflation increases for some of the poorest; and I am proud to say that as a result of our decisions, more people, not fewer, are going to university, including record numbers of students from disadvantaged backgrounds. As I have told the Committee before, the entry rate for the most disadvantaged 18-year-olds has risen under the current system to 18.5%, a record high. Disadvantaged young people in England are now a third more likely to enter university than they were when the coalition Government came into office. The system is progressive; it ensures that those who benefit the most from their education contribute more.

I was struck and a little disappointed that the shadow Secretary of State claimed that the Bill was silent on social mobility and widening participation. I do not think that that is the view of the Committee as a whole. I am surprised that she has not taken into account the various ways in which the Bill moves forward Government policy on widening participation. For her benefit, I will remind her of some of the key ways in which it does so. It makes equality of opportunity a core duty of the OFS. As we were discussing an hour or so ago, it places a transparency duty on providers, shining a spotlight on those that need to go further on social mobility. It introduces an alternative finance product so those who cannot access interest-bearing loans for religious reasons can access student finance. It mainstreams the director for access and participation’s role in the office for students, giving that important function the full suite of OFS levers and sanctions. It ensures that information collected by the admissions body can be used for research on social mobility. It enables new providers to enter the sector, providing greater diversity of provision for a wider range of students. Those are just some of the many ways in which the Bill takes us forward on social mobility, and I was disappointed that she did not acknowledge any of those.

[Angela Rayner]

I suppose the issue is gusto—whether the Bill has teeth and the ability really to drive social mobility. I was hoping that the Minister, instead of just reeling off what he has told us before, would come with me today and do something actually to help social mobility. That is why I am disappointed with his response.

[Joseph Johnson]

As I was going to say, our funding system for higher education has enabled us to put it on a sustainable financial footing and, in turn, lift the student number cap. If we moved back to the old way of funding universities through direct Government grants and the payment of tuition fees and maintenance grants, we would have to reimpose the student number cap, which would inevitably have an impact on widening participation. We have seen in Scotland how the alternative funding model that the Labour party wants to move us back to crimps social mobility. We see that in all the data from Scotland on widening participation and access. The hon. Lady needs only to look at the Scottish example to see how her policies would take us backwards on social mobility. She needs to look carefully at how the record participation of people from disadvantaged backgrounds under our funding system is driving social mobility and will continue to do so in the years ahead.

[Angela Rayner]

I thank the Minister for giving way once more; he is being generous with his time. Does he agree that Labour’s announcement about how we would plan the corporation tax rate to pay for things such as education maintenance allowance to be reintroduced was a really progressive step and would be the best way to help all our students?

[Joseph Johnson]

There is always the option of raising taxation and imposing on the general taxpayer the burden of paying for—

--- Later in debate ---

I understand that there were concerns that the changes might have deterred students from entering higher education, but we have seen that that was a dog that did not bark. The evidence has shown that participation continues to rise following our reforms in 2012. The latest data from UCAS suggest that it will continue to do so.

[Angela Rayner]

The Minister is making great play of his sustainability model and suggesting that the Opposition do not have one. Is he aware that the OBR report on sustainability says that the debt increase by this Government will be 11% of GDP when they write off the existing debt under their proposals?

[Joseph Johnson]

The hon. Lady may want to tell us more about her sustainable model. We have a sustainable funding model and it is delivering record participation for people from disadvantaged backgrounds. Surely she should welcome the level of investment that the Government are consciously and deliberately making in our higher education system. I thought that the Labour party would welcome Government investment in our higher education system but, on the contrary, it seems to be lamenting it. That is extraordinary.

[Angela Rayner]

The Minister fails to understand that I said in my contribution that the Government are increasing debt for future generations and not providing a sustainable model. He is trying to hoodwink the public into believing that that is what he is trying to do. He should be honest with the public.

[Joseph Johnson]

The hon. Lady should look carefully at the benefits that students get from higher education. She will have seen the frequently rehearsed statistics showing that a woman who goes through higher education can expect lifetime earnings that are £250,000 higher, net of tax and the cost of university, than she would have had, with the same qualifications, if she had not gone through university, and the figure for a man is £170,000. The model is sustainable.

Student Loans Agreement

Angela Rayner Excerpts

Monday 18th July 2016 Westminster Hall

[Angela Rayner (Ashton-under-Lyne) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Pritchard. I welcome the Minister to his place. This is the first time I have debated with him. I thank my hon. Friend the Member for Warrington North (Helen Jones) for securing this debate. She is absolutely right to say that students have once again been let down by this Government.

This has been an excellent discussion. I want to reiterate the points made by my hon. Friends the Members for Sheffield Central (Paul Blomfield) and for Ilford North (Wes Streeting), who outlined the issue of trust. They demonstrated how unfair this retrospective change is and spoke about its long-term impact on trust in the Government. Before the general election, my hon. Friend the Member for Sheffield Central asked about this specific issue. Despite there being no indication before the votes were cast in the general election, no indication in the House and no indication in the Conservative party manifesto, the change has happened. That is outrageous, as he pointed out. I agree with him that a retrospective change will destroy any faith that students have in the political system. I urge the Minister to think about that carefully.

My hon. Friend the Member for Cambridge (Daniel Zeichner) asked the Prime Minister a question, and demanded an apology, and not just a bill, on behalf of many thousands of his constituents. Unfortunately, the cost of this disastrous Government has fallen upon our students and the next generation.

The issue of trust goes to the heart of the debate. As my hon. Friends have exposed, time and again the Government have offered grand rhetoric on improving access to higher education and social mobility, but time and again they have failed to deliver. Indeed, they have made matters worse, especially if we take into account the Higher Education and Research Bill, which is having its Second Reading tomorrow, and its potential to increase tuition fees.

I associate myself with the words of the hon. Member for Southport (John Pugh). I commend him for his commitment to education, both inside the House in his work as a Member of Parliament and before coming to this place as a teacher and school leader. He clearly demonstrates a huge amount of knowledge and has great respect in the field.

Every time the Government legislate on higher education, we know that it will mean cuts to the services that mature students and those from low-income backgrounds need and an increased debt burden on our students and that it will make it more difficult for those from low-income backgrounds to attend the top universities. That takes place in the context of spending on adult skills falling in real terms by 41% in the previous Parliament, and funding for post-16 education falling by nearly 16%, the deepest cuts that post-16 education has ever seen.

As my hon. Friend the Member for Heywood and Middleton (Liz McInnes) pointed out, in higher education, the Government, not content with tripling tuition fees, scrapped maintenance grants for the poorest students, meaning that they will graduate with more and more debt. That change, justified as a means to cut the national debt, will fail even the test that the Government have set themselves—the Institute for Fiscal Studies has shown that, for each cohort of graduates, the measure will save the Government only 3% of their contribution to students’ higher education.

Who will pay the price for the Government’s penny pinching from the HE budget? As my hon. Friend said, it will be those students who come from poor backgrounds who go on to earn high salaries. Having needed maintenance loans to get through university, they will face a far higher debt burden than their well-off peers, and will spend more and longer paying off the debt that the Government have lumbered them with. She is right to say that the changes are unacceptable, unjust and underhanded, and that the Conservatives have maxed out the nation’s credit card and it is our children who will be footing the bill.

That is the substance of the issue before us today: the Government’s decision to freeze the repayment threshold on student loans. The decision announced in last year’s autumn statement to freeze the threshold retrospectively is only the latest in a long line of attacks on access to education and social mobility. My hon. Friend the Member for Blackpool South (Mr Marsden) was right when he said that the change amounts to “mis-selling” of loans to students since 2012. He was right to say that it

“will be a disincentive to future loan applicants, in further education as well as higher education”.

Students will now feel that they are writing a blank cheque to the Government, whom they have no reason at all to trust. Will the Minister at least have the decency to tell us why any student should ever trust his Government again? I cannot put it any better than my hon. Friend the Member for Nottingham South (Lilian Greenwood), who described the change as dangerous, unfair and outrageous.

The Government, when they trebled the cost of tuition for students, said that students had at least been given a more generous income allowance before having to start paying back their loans. However, even that small consolation will now cease to be true. The IFS has shown that, after five years of the freeze, the repayment threshold will, in real terms, be the same as it was before fees were trebled. The Government promised investment and gave nothing but more debt. Again, it will be middle earners and those from disadvantaged backgrounds who will suffer the most.

The IFS has shown that the average student, as many Members have pointed out, will lose £6,000 as a result of the change. That is outrageous and indefensible. Hard-working students and socially mobile graduates from low-income backgrounds, the very people we should be giving every encouragement and opportunity to pursue higher education, are the very people the Government seem most determined to put off.

The Government’s own consultation said that women, black and minority ethnic students, those with disabilities, and mature students will be disproportionately affected by the change. As my hon. Friend the Member for Walsall South (Valerie Vaz) outlined today and in her Adjournment debate last month, many groups who have historically not had access to higher education are set to face a £6,000 disincentive. When the Government talk about widening access to education, they must tell us who exactly they are trying to help.

As my hon. Friend the Member for Warrington North pointed out, no private company would get away with retrospectively changing the terms of a deal, as the Government have done. Perhaps the Minister can at least tell us their justification for doing so. Given that it will be several years before the Exchequer makes any substantial gains from the policy, can the Minister tell us how much money it will be likely to save in future? That is based on the fact that, for the first several years under the changed scheme, there will be little difference between £21,000 as it was in 2012 and what it was in real terms.

Why are the Government pursuing a policy that will heavily penalise those who come from disadvantaged backgrounds, go to university and then become high earners? Given that the Government’s own consultation document has shown that it will be women, BME students and those with disabilities who will lose the most as a result of the policy, why have the Government still failed to publish an equality impact assessment? When can we expect them to do so?

The overall changes to how higher education is financed are basically worse for those who are from low-income backgrounds, because they need the maintenance loans alongside the tuition loans. Increasing their debt burden means that they will spend more and longer paying off their loans. Those from affluent backgrounds, who do not take out the maintenance and tuition loans, will not have that issue. Why, at a time when those from disadvantaged backgrounds are attending top universities in smaller and smaller numbers, are the Government pursuing a policy that will do little more than create a worrying disincentive for those from disadvantaged backgrounds who want to pursue higher education? The changes to the fee repayment threshold will act as a disincentive to many, as will the increase in the student debt burden, especially when taken alongside the change from maintenance grants to loans.

Was the reason the Government did not announce the policy in the spending review that they knew at the time that it would be universally condemned? I agree with the Minister’s recent comments that there has been a “worrying lack of progress” on widening participation in higher education. I share his conviction to “redouble our efforts” to boost social mobility. So can he please explain how breaking the trust of students and increasing their debt burden will achieve those laudable goals? It is clear from the debate today that the measure will have the opposite effect. Given the new Prime Minister’s words last week—about equality and bridging the gap—will the Minister reconsider that position today?

[Mark Pritchard (in the Chair)]

Before I call the Minister, as colleagues will know, changes made in this Parliament to the Standing Orders allow the mover of a motion to speak for two or three minutes after the Minister has sat down. Helen Jones, would you like to do that?

--- Later in debate ---

[Joseph Johnson]

Certainly. We, too, are committed to increasing the proportion of students from disadvantaged backgrounds who go to university. As I said a moment or two ago, we in fact intend to double that proportion by the end of this Parliament compared with the level that we inherited from the previous Labour Government in 2009-10, taking the proportion from 13.6% to 27.2%. We also want the number of students from BME backgrounds who go to university to increase significantly, by 20%.

[Angela Rayner]

I stress the point made by my hon. Friend the Member for Warrington North (Helen Jones). The fact is that we still are not making progress with the Russell Group and ancient universities. Can the Minister be more specific about what the Government will do to try to make progress in those vital areas?

[Joseph Johnson]

Yes. As I said, we have written to Les Ebdon to give him guidance for his dealings with all universities. That guidance gives him strong political cover to ensure that all institutions do the heavy lifting that he requires of them as he negotiates access agreements. Through the Higher Education and Research Bill, which hon. Members have mentioned, we will strengthen his powers further, so he can start to look beyond the point of access to universities and at the whole student lifecycle. Widening participation is about much more than simply whether disadvantaged people get to university; it is also about how well they attain when they are there and how successfully they move on from higher education into employment or further study.

--- Later in debate ---

[Joseph Johnson]

Modelling the RAB charge is not an easy process, but the figures that the hon. Gentleman referred to earlier were simply not correct. We never modelled the RAB charge at over 50%. We expect about 20% to 25% of the loan book not to be repaid, and that is a deliberate, conscious investment by the Government in the skills base of the country. It is a progressive policy that enables people to go into careers that may not necessarily allow them to repay the full amount, and the Government do that knowingly and willingly.

[Angela Rayner]

Will the Minister not acknowledge some responsibility of the Government for the lower than expected average earnings projection he has just outlined, in terms of decent jobs and high wages?

[Joseph Johnson]

I reject the characterisation of our labour market as a failure. Clearly, when we look at the unemployment figures today, we cannot but be struck by the extent to which we have succeeded in getting many thousands more young people into work. The latest unemployment data from the ONS show 23.1 million people working full time, which is 300,000 more than even a year ago, let alone than in 2010. The percentage of young people out of work is now at a record low altogether.